As per the ‘Consolidated FDI Policy Circular 2014’, amended through Press Notes 7 & 8 of 2014, in sectors/ activities not under the prohibited list, FDI from 20% to 100%, subject to applicable laws/regulations and other conditionalities is permitted. In sectors/ activities not listed therein, FDI is permitted up to 100% on the automatic route, subject to applicable laws/ regulations; security and other conditionalities. There is no proposal to contain FDI to 10% in listed companies or revise sectoral cap in unlisted companies.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha.

FDI limits: permitted up to sectoral caps under automatic or conditional routes; no proposed cap reduction for listed firms. Foreign Direct Investment (FDI) is permitted in non prohibited sectors under the Consolidated FDI Policy Circular 2014, subject to applicable laws, sectoral conditionalities and security requirements. For activities not specifically listed, FDI is allowed up to full foreign ownership on the automatic route, subject to legal and security conditions. There is no proposal to impose a reduced cap on FDI in listed companies or to alter sectoral caps for unlisted companies.